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05-29-59SpMtg 117 NAY 29TH~ 1959. A Special Meeting of the. City Council, scheduled to be held at !0:00 A. M., was delayed untxl 12:00 Noon, due t.o a Public Hearing having been called by the Palm Beach County Conmmssion for the purpose of discussion with the City Council and interested parties concerning the request of the City of Delray Beach for dedication of certain- County owned lands in the Lake Ida area, by the County Commission, to provide suitable lands for City of Delray Beach Recreational Facil- ities. The Special Meeting of the City Council was called to order by Mayor Talbot, with· City Manager W. E. Lawson Jr., Ci~ty Attorney Harry T, Newett and Commssioners J.. LeRoy Croft, Charles H. Harbison, Fred B, McNeece and George V. Warren being present. This meetinz had been called for the purpose of considering the 'Water Agreement" and the Sewage Agreement betw. een the City of Delray Beach and South Coast Development Corporatio.n (the subdivider an.d owner of lands platted and described as Tropic Palms, Plat No. 2) and Tropical Palms, Inc., (the subdivider and owner of lands platted and described as Tropic Palms - Plat No. $). · It Il ,l~ Review of the proposed Agreements revealed the necessity of ef fecting minor changes and the meeting was adjourned until ll:O0 A. M. Saturday, Ney 30th, and the City Attorney was requested to amend the said Agreements for consideration by-the Counoil at said hour of ll:O0 A. M., Saturday. l T.he Special Meeting, adjourned on Friday,1 ~e#convened on Saturday, a.t 11.90 A, M., and was called to ord.er by Mayor George Talbot Jr., with C~ty _N~_nager Vt. E. Lawson Jr., C~ty Attorney Harry T. Newett and Commissioners J. LeRoy Croft, Charles H. Harbison, Fre~ B. McNeece and George V. Warren being present. City Manager. Lawson submitted the .amended V~ater. Agreement a.nd the Sewage Agreement, as prepared by the C~ty Attorney ~n co-operation with Att~.y. A, J. Mu.sselman acting in behalf of Southcoast Development Corporation and Tropical Palms, Inc. ~. Mr. Henry J. Mellon and Associate Mr. Wm. V. McKmnney were present and expressed their approval of the amended Water Agreement and the Sewage Agreement. Commissioner Warren then moved for ADOPTION of the "Water Agree- ment'' as amended. Motion was seconded by Commissioner McNeece and upon Call of Roll received the unanimous approval of the Council. The 'Water Agreement" a~opted is as follows: V~A TER AGREEMENT THIS AGREEMEI~, Made this BOth day of May, A. D., 1~$~, between CITY.OF DELRAY B~E~.CH, a municipal corporation in .Palm Beach County, Florida, of the f~rst par. t, hereinafter called "C~ty", and SOUTH COAST DEVELOP~ENT CORPORATION (the subdivider and owner of lands platted and described as Tropic Palms, Plat No. 2), and TROPICAL PAINS, INC. (the subdivider and owner of lands platted and described as Tropic Palms Plat No. 3), of~the second part, hereinafter called the Owners-Develop- ers or Assignees. ~'~F~EAS, upon petition of the foregoingowners, the City did on. January lB, 1~88, a~nnex the said Tropic Palms, Plat No. 2, and Tropic Palms, Plat No. B (which shall hereinafter be collectively referred to as "property") under the terms and conditions set forth in Ordinance No. 6-277; and WHEREAS, said Owners are about to develop said property by con- structing buildings, residences and other improvements thereon, and in order to meet requirements of certain Federal Board of Health as to health requirements and the Veterans' Administration, the Federal Hous- ing Administration and private lending agencies as to financing and other requirements, it is necessary that adequate water and sewer fa- cilities be provided for or made available to each building or resi- dence constructed on said property; and ~-~EREAS, Owners are willing to undertake the construction, in- stallation and completion of a sewer system for said properties, and to install water mains and supply lines for such properties, so that all buildings and residences constructed on Owners-Developers proper- ty by Owners-Developers or ~y any person, firm or corporation holding by, through or under Owners Developers,.may have furnished to them and to their occupants an adequate domestic water ~up?ly and sewer disposal service, subject to all the ter~s and .,,~,~.,.o~.~ of this a- wnreement; provided, however, that the C~'~y shall £~rni~h water to ers-Developers at the "entrance" or "s~bd±vision gates': of said properties at a rate hereinafter fixed, and Owners--Developers may thereafter distribute and resell such w~.ter within said property at rates not to ~xceed the usual retail rates charged other ~sers within the City; an~ ~PHEREAS, .:he Cindy is willing to sell water to said ~mers-Devel- opers for their properties here~nabove described upon the terms and conditions hereinafter set forth. NOV~, THEREFORE, IT iS ~UTUALLY'AGREED AS FOLLG,¥S: 1. Upon OwT. ers--.Developers installing at their cost the necessary transmission lines, City agrees to deliver water to the property through a master meter to Owners-Developers at the ra'~e hereinafte~ set forth, in the same manner as to other residential users of water in the City; that is to say, if the City on account of unavoidable accidents or other causes not reasonably within its control, shall be prevented from furnishing water, or from furnishing it in th~ usual amount or under the normal pressure~ the Owners-Developers shall have ~o action against the City for damages occasioned thereby, but the C~ty shall, unless the result be a practically total destruction of its property, proceed With all reasonable diligence to put itself and its works in condition to continue the water service. During the existence of each interruption in or curtailment of service, the City shall furnish to the Omners-Developers so much water as it is able to furnish pro-rata with the rightful require~e~ts of its own uses and of its o'~her customers. It is understood ths. t no'thing herein con- taine~ s.hall be construed as giving O~mers-Developers any preference- or priority to service over and above any other customer of the City, either now or in the future. 2. During the continuance of this contract, the Cityshal! ~o'~ be responsible for the maintenance or repair of transmiss~.on or water n~ains, or supply lines within the property,~%/~.~'~~%%~ How- ever, all such mains or supply lines installed mustcomply with the City's specifications. 8. .(a) From and after the date when Ownors-Developers shall take and use water into its property mnder ~his agreement, the Developers (unless rate changed as 4ereinaf~r set forth) shs. ll to the C~ty'on or before the 20th day of every month thereafter ~?.~ a-- mount equa~ to the sum of 22¢ per 1,O00 gallons of water delivere~ through sa~d mast?.meter, computed to the n~arest fraction of 1~000 gallons, w~th a m~n~mum charge of $50.00 monthly. Bills covering the water charges determined as above provided shall be rendered monthly on approximately the 10th day of each month and payment to the City shall be made within SO days after such billing. The City shall have right to shut off water for non payment, and all other rights herein provided or existing. (b) The rate hereinabove provided of 22~ per 1,000 gallons of water delivered shall be adjusted on a semi-annual basis commenc- ing six months from date of execution of this contract in such fashion that the City shall never receive less than a 10% profit over its cost incurred, which costs shall be detemined in accordance with the followimg formula: ' C = 0 % N- A X 1,000 MAY 29, 1959. in which: "C" is the cost of water per 1,000 gallons; "0" is the reasonable and necessary operating expenses (in dollars) which includes all costs involved in actual pro- duction, treatment and distribution as well as the overhead, accounting.and collection and depreciation of the plant and equipment ~n service. "N" is the reasonable and necessary, non-operating ex- pense (in dollars) which includes all other expenses related to operating expense, but net properly classified as such, in- cluding debt administration~and bond interest (payment of bond principal is not included). ~A" is the amount of money transferred to the General Fund to cover cost of supervision, billing and collection of accounts. "V" is the volume of water (in gallons) produced and pumped from the water plants. The financial records and reports of the City of Delray . Beach shall be the source of information for use in computing the for mula. In no event, however, shall~he O~mers-Developers be charged more than the retail rates of users within the same category, same sized meters, etc., as same from time to time may be specified by the ordi- nance setting retail rates in the City of Delray Beach. 4. The Water taken or used by the Owners-Developers under this agreement shall be measured at the master meter to be furnished City at Owners-Developers cost. Said meter shall be installed andmain- tained by the City. If any such meter so installed fails to register properly at any time during any month, the proper regSstration during such month shall be determined by agreement or by estimate upon the basis of corresponding period in which the system was opera,ed under sonditions similar to tho~e-existing during the month in which failure to register occurred. A $1,000.QO bond will be ~laced with City to guarantee water payments due from0wners-Developers. No allowance shall be'~made on any bill on account of claim for inaccuracy of measurement, unless the Owners-Developers shall, in writing, request such allowance within thirty days from the date on which such bill is rendered, and shall apply for proper test or recal- ibration of the meter. If it shall be shown by test that the meter is inaccurate to the extent of §% or more, proper allowance, as shown by the test to be necessary shall be made to the party entitled thereto, but not for a longer period than that covered by the bill on account of which allowance is claimed. The Owners-Developers shall not open or close the meter, nor interfere with the City's apparatus or equipment, nor permit any un- authorized person to do so. $, Owners-Developers shall not have the right to furnish water service to other properties outside their above described properties unless the written consent of the City be first obtained. 6o Upon City supplying water t~rough the master meter as afore- said, Owners-Developers covenant and agree to supply water to all of the said property at the same price as those set forth in Chapter Z? of the Code of Ordinances of the City of Delray Beach, as ~hcy exist at this time, or as they may be amended from time to time xn the future. If the Owners-Developers default in the performance of ~ny obligation under this agreement~ either by failure to pay for water when due, or by failure to servxce the property, or b~ breach of any other term and condition of this agreement, then the City may, and at its option, terminate this agreement, and forthwith take exclusive possession and operate the water system in said property, and the sole right remaining to Owners-Developers shall be as set forth in Para- graph 8(b) of this agreement. MAY 29, 1959 ?. It is understood by the parties hereto and it is hereby made a part of this agreement that at the end of any current monthly ~eriod during the life of this agre. e.ment, the schedule o.f charges, or tVh~ rate as set forth in Paragraph $(b) hereof' may be revised, adjusted and a- mended to. such an ex~en~ as exis.ttng c~o~ndi~t.~ions .m~.y warrant in or.der for the C~ty to. comply with Section ?(9) (x) of ~ts Charter and w~th Ordinance No. G 268, adopted July Sth, 1957. 8. !a) This agreement~shall extend for t.hirty years,.except that the C~ty may, and does her~ey reserve the'right and. option, to term~_~ate this.contract.by paying to Ownems-Develope.rs 50%of i.ts gross cost of installation of the water system any.t~me after f~ve years from the date hereof; a.nd upon pa.y~ent of sa~d sum Owners-Devel- opers shall have no further r~ght in sa~d system or under this agree-- men t, (b) In the further event that this agreement may be terminated for the breach o~ defau.lt of O~ners-Developers, or in the event this agreement shall be termunated by law or other reason (than the City's exercising its option above), then in such event the only obligation of City to Owners-Developers shall be as contained in Ordinance adopted January 1S, 1958. In the case of default by Owners-Developers of any provision of th~.s ~agreement other than .the payment of bills rendered as set forth zn Paragraph $, the City shall provide the Owners-Developers with a written notice of default and the Owners- Dev.elopers shall have sixty days from the date of delivery of such notzce to cure such default. 9o The City shall have access at all reasonable hours to all the Owners-Developers plans, contracts-and engineering, a.ccomnting, finan- cial, statistical, customer and service records relating to the in- stallation and operation of the Water Su~ply System herein. The following re.cords and reports shall be fxied with the City Clerk: (a) Copxes of such rules, regulations, terms and cond.itions a, dopted by the Owners-Developers for the conduct and operation of the system. (b) An annual summary_repo~t showing gross revenues received from its operations.within the .City during the prec. eding year and such other informatxon as the C~ty sh~.ll r.equest with respect to p~operties and expenses related to the servxce w~thin the City. The Owners-Developers, or their authorized agents, shall have nc- c.ess to Ci.ty's~ records fgr. determination of rates hereinabove pro- v~ded for ~n Pamagraph $(b). 10. It is agreed between the parties that UPon construction of the water main to~ the point where the master meter will be installed, t.he water main so constructed and lying in areas outside the sub- d~visions of Owners-Developers shall be conveyed to the City, .sub~e.ct, however, to the provisions regarding payment for same as contained ~n Paragraph 8 hereof. 11. This contract~is subject and subordinate to the-terms and conditions of Ordinance G-268 passed July 8, 1957. 12. This contract shall be binding upon the successors and as- signs of the parties hereto. IN WITNESS WHEREOF, the said pa.~ties have caused this agree- ment to be executed by their duly authorized officers, the day and year first above mentioned. 121 MAY 29, 1959. CITY OF DELRAY BEACH MAYOR ATTEST: SOUTH COAST DEVELOPMENT CORP. Assistant ~ SeCretarY By ATTEST: TROPICAL PAINS, INC. ,, , .... se~etar~ ......... Fi{~S~DENT . ...... Commissioner Warren then moved for ADOPTION of the "Sewage A~ree- lB · · , · o, . ment submmtted by the C~ty Manager. Mot:~on was seconded by Commas si°net Harbison and upon Call off'Roll was unanimously approved by the Council. "SE~;AGE AGREEKENT", as Adopted, is as follows: SEWAGE AGREEMENT THIS AGREEMENT, Made and entered intO. this SOth day of N~.y, A. D., 1959, between CITY OF DELRAY BEACH, a municipal corporation ~n Palm Beach County' Florida, of the first part hereinafter called "City"; and SOUTH COAST DEVELOPMENT CORPORATION lthe subdivider and owner of lands platted and desc. ribed as Tropic Pa]m~, Plat No. 2), and TROPICAL PALMS, INC. (the subdivider .and owner of lands platted and described as Tropic Palms, Plat No. 3), of the second part, herein- after called "Owners-Developers" or ASsignees. V~EREAS, upon petition of the foregoing Owners, the City did on January 13, 1958, a. nnex the said Tropic Palms, Plat No. 2, and Tropic Palms, Plat.No. 3. (which shall hereinafter be collectively referred to as "property"), under the terms and conditions set forth in Ordi- nance No... G-277; and WHEREAS, said Owners are about to develop said property by con- structing buildings, residences and other improvements thereon, and in order to meet requirements of certain Federal Board of Health, as to health requir, ements, and the Vet~erans' .Administr.ation, the Federal Housing Administration and priv~%e lending agencies, as to financing and other requirements, it is necessary that adequate water and sewer facilities be provided for or made available to each building or resi- dence conetructed on said property; and WHEREAS, Owners are willing to undertake the construction, instal- lation and completion of a sewer system for said properties, and to install water mains and' supply lines for such properties, so that all buildings and residences constructed .on Owners-Developers property by Owners-Developers or by.any person, fmrm or corporation holding by, through or under Owners Developers,may have furnished to them and to their occupants an adequate domestic water.supply and sewer disposal 'set.vice, subject to all the terms and conditions of this agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS: 1. The City does hereby consent to Owners-Developers installing, maintaining and operating a private sewer system with treatment plant to service the property; provided, however, the City must first ap- rov.e in writing t.he engineering plan and all installations must be o C~ty specifications. 122 MAY 29, 1959. 2. Owners-Developers sha~l pay the entire cost of installation, of the sewage treatment and dispOsal plant, the lift stations, the force mains and distribution mains, and ether portions required. $, This agreement shall extend for thirty ($0) years. However, after at any time five years from the date of this agreement, City shall ~ave the option to purchase the complete.sewage disposal s~ste~i including the sewage treatment plant and all distributions and collec~ tionmains at the appraised value thereof. In the event City elects to exercise its option, it shall so notify Developers in writing and thereupon City shall appoint one'appraiser; Developers shall appoint one appraiser and the two appraisers shall appoint a third. Both par- ties agree to be bound by the price set by a majority of the three ap- praisers. City shall ma4e payment in full to Developers for the en- tire system within sixty days after the majority of appraisers have set the purchase price. 4. The Owners-Developers covenant and agree that they will adopt a schedule of rates and charges for such sewer system conforming sub- stantially and no higher than those oharged for similar services in Palm Neach Comity, Florida, and which charges shall be the same as ** 5.'~ Owners-Developers shall be liable for all damages occasioned b~y the acts, negligence or injury to the rights of other persons, firms or corporations in the same manner and with the same limitations as any other private corporation. 6. The City shall have access at all reasonable hours to all the Owners-Developers plans, contracts and engineering, accountinE, finan- cial, statistical, customer and service records relating to the pro- perty and the operation of the sewage disposal system. The following records and reports shall be filed with the City Clerk. (a) Copies of such rules, regulations, terms and conditions a- doptedby the Owners-Developers ~or the conduct of the sewage disposal system. (b) An annual summary report showing gross revenues received from its operations within the City during the preceding year and such other information as the City shall request with respect to properties and expenses related to the service within the City. ?. Owners-Developers agree, subject to delays caused by acts of' God, the elements, labor troubles, accidents and any and all causes not reasonably within its control, and while the owner of said distri- bution lines, to replace all streets, excavated, opened, or torn up by it, in as good condition as they were prior to such excavation, open- ing, or tearing up, with as little delay and hindrance to the abutting proper~y owners as reasonably possible, and the City agrees to grant . ~uch rights of ways as'are reasonably necessary to fulfill the object ives of this agreement. 8~ This agreement shall be binding upon the successors and as- signs of the parties hereto. IN WITNESS ~-~EREOF, the said parties have caused this agree- ment to be executed by their duly authorized officers, the day and year first above mentioned. ** those charged by the City of Delray Beach at such time when sewer fa- cilities may be installed within~said City. MAY 29, 1959. continued ATTEST: CITY OF DELRAY BEACH By ¢it~ ci'e~k- .............. ~ A 'Y 0 '~ ....... ATTEST: SOUTH COAST DEVELOPMENT CORP. By ' ' AssiSTANT SECH~T~HY ..... PRESIDENT ATTEST: TROPICAL PAI~viS, INC. By o ~ c r e ~] a ry i~ESIDE~'.T MAY 29, 1959.